(17) 7 GSP beneficiary countries changes

General System of Preference beneficiary countries changes Article 4(1) of EU Regulation 978/2012 provides that a country that has been classified by the World Bank as a high income or an upper-middle income country for 3 consecutive years, or a country that benefits from a preferential market access arrangement which provides the same tariff preferences as General System of Preference (GSP) or better for substantially all trade shouldn’t benefit from GSP.

Tonga

In 2013, 2014, 2015 Tonga was classified by the World Bank as an upper middle income country and therefore was to be removed from the list of GSP beneficiary countries in Annex II of EU Regulation 978/2012 with effect from 1 January 2017.

However in 2016 Tonga was classified by the World Bank as a lower middle income country. Therefore it has been re-instated to the list of GSP beneficiary countries in Annex II of EU Regulation 978/2012 with effect from 1 January 2017.

Therefore there has been no interruption to Tonga’s entitlement for eligible goods to benefit from GSP preference.

Ukraine

The deep comprehensive free trade agreement between the EU and Ukraine took effect from 1 January 2016. As it provides better tariff preferences than the GSP for substantially all trade, Ukraine will be removed from the list of GSP beneficiary countries in Annex II of EU Regulation 978/2012 with application from 1 January 2018.